Financial News: Crypto exch to refund $1.1 billion

Gemini will return $1.1 billion to customers who invested in its defunct loan program.

Gemini Trust Company, the cryptocurrency exchange founded by billionaires Cameron and Tyler WInklevoss, will return $1.1 billion to customers who invested in its defunct loan program, New York regulators said Wednesday.

In addition, Gemini will pay a $37 million fine to the New York State Department of Financial Services (NYDFS) for "significant failures that threatened the safety and soundness of the company," regulators said.

"Gemini failed to conduct due diligence on an unregulated third party, later accused of massive fraud, harming Earn customers who were suddenly unable to access their assets after Genesis Global Capital experienced a financial meltdown," said Superintendent Adrienne A. Harris in a statement.

Photo: Coinbase Global, Inc., branded Coinbase, is an American publicly traded company that operates a cryptocurrency exchange platform. Coinbase is a distributed company; all employees operate via remote work. It is the largest cryptocurrency exchange in the United States in terms of trading volume.